Custom authorities tighten noose on iPhone 6s 'smugglers'

According to the release issued by Mumbai customs authorities, duty will be levied even on a single phone since the value of the device exceeds free allowance.Gulveen Aulakh | ET Bureau | October 07, 2015, 08:53 IST

If you are an iPhone fan and want better hardware, definitely. If time is at a premium, go grab the iPhone 4S. It is not going to become outdated anytime soon.NEW DELHI: Those waiting for Apple's latest phones from overseas via the grey market route may not get them. And those planning to bring them from outside India without paying duty might need to do a rethink as they could be fined. Smugglers of the newest iPhones may even face arrest.

They warned that passengers picked up after passing through the green channel will be liable to pay a fine, penalty and customs duty. According to the release, duty will be levied even on a single phone since the value of the device exceeds the 'free allowance.' Passengers carrying iPhones in commercial quantity are liable to be arrested.

Additional Commissioner of Customs, Mumbai Airport, Milind Lanjewar confirmed the developments to ET and said the rules already exist and are being reiterated to travelers. "For goods above Rs 45,000, technically passengers have to declare but most people are not aware of it. A duty of 36% is levied on the amount above this limit," he said. Even if a single iPhone brought from overseas exceeds the free allowance value, it would have to be declared and duty would have to be paid. The cheapest iPhone 6s, which comes with storage of 16GB, is listed on Apple's website as costing $649 (Rs 42,350) while the same model on its Singapore website can be purchased for S$1,048 (Rs 48,000).

When value of undeclared goods rises above Rs 20 lakh, the authorities proceed with arrests, Lanjewar added. The Mumbai Airport Customs authorities have seized about 200 of the latest iPhone models valued at Rs 1.23 crore over the past two weeks. The phones were brought into India by fliers coming from Singapore, Hong Kong, London, Dubai and other countries. Authorities have since increased screening of checked-in and hand baggage, besides profiling passengers.

ET reported last week, citing trade sources, that the iPhone 6s 16 GB would be sold for Rs 62,000, 64 GB variant for Rs 72,000 and 128 GB version for Rs 82,000, while the iPhone 6s Plus 16 GB would be priced at Rs 72,000, 64 GB at Rs 82,000 and 128 GB at Rs 92,000. "As the models are still to be launched in India, passengers are trying to smuggle these iPhones for monetary benefit by sale through grey market," the authorities have said.

The Mumbai seizure was not the only one. On Sunday, seven youth were detained at New Delhi's Indira Gandhi International Airport with about 182 iPhone 6s and 6s Plus models brought in from Hong Kong and Singapore on separate flights, officials said. With the launch 10 days away, they expect more such cases.

A customs official at Delhi airport said the department has tightened vigil for all iPhone devices coming into India.